NSEL said these five defaulting members did not have adequate commodities in the warehouses, which is against the mechanism specified in the Exchange circulars
National Spot Exchange Ltd (NSEL) said it has filed complaint against five of its defaulting members before the investigation authorities.
In a statement, NSEL said it declared its nine members as defaulters when they did not complete the last pay-in. "Amongst these nine defaulting members, the exchange has initiated case for investigation against five defaulting members who did not have adequate commodities in the warehouses, which is against the mechanism specified in the Exchange circulars. Non-delivery of commodities or its withdrawal is a breach of faith and breach of contractual arrangements," the release said.
The five defaulters against which NSEL has filed complained are, Ark Imports Pvt Ltd, Lotus Refineries Pvt Ltd, NK Proteins Ltd, Vimladevi Agrotech Ltd and Yathuri Associates. The four other announced defaulters are Loil Overseas Foods Ltd, NCS Sugars Ltd, Spin Cot Textiles Pvt Ltd and Tavishi Enterprises Pvt Ltd.
As per the rules and bye-laws, the Exchange has asked these defaulting members to submit their books of accounts and hand-over all the collaterals to NSEL.
NSEL has appointed SGS to carry out quality and quantity inspection of the commodities lying in the warehouses and their reports are being received in stages based on the inspection being done.
NSEL said it will also take similar recourse for other defaulting members who are not cooperating. As informed earlier, the NSEL board has already initiated investigation against the management team and its former managing director and chief executive.
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